On May 1, 2025, the U.S. Department of Labor (DOL) issued Field Assistance Bulletin No. 2025-1, which provides updated guidance to the Wage and Hour Division’s (WHD) field staff when determining independent contractor status under the Fair Labor Standard Act (FLSA). Going forward, WHD will not enforce the DOL’s 2024 Independent Contractor rule (89 Fed. Reg. 1638 and DOL Fact Sheet 13 from March 2024). Instead, it will enforce guidance from 2008 pursuant to DOL Fact Sheet #13 from July 2008 and DOL Opinion Letter FLSA2025-2. Note that for now, the 2024 rule is still in effect but WHD will prioritize enforcing the independent contractor classification under the 2008 rule.

The 2008 Fact Sheet #13 that WHD will enforce focuses on the following factors to determine independent contractor classification:

1. The extent to which the services rendered are an integral part of the principal's business.
2. The permanency of the relationship.
3. The amount of the alleged contractor's investment in facilities and equipment.
4. The nature and degree of control by the principal.
5. The alleged contractor's opportunities for profit and loss.
6. The amount of initiative, judgment, or foresight in open market competition with others required for the success of the claimed independent contractor.
7. The degree of independent business organization and operation.

Please keep in mind that even though the WHD is changing its enforcement priorities, because the 2024 Independent Contractor rule is still in effect, it can be the basis for claims in private litigation.  In addition, other independent contractor rules, including those enforced by the Internal Revenue Service, National Labor Relations Board, Immigration and Customs Enforcement Bureau, and state laws remain the same.

HEC will continue to monitor relevant guidance and provide updates as appropriate.

Please note the information provided is for informational purposes only and may not reflect the most current regulatory developments.  We strive to keep our materials up to date, but there may be occasions when information becomes outdated.  Users are encouraged to verify the applicability of the content before relying on it for decision-making.  If you have any questions or concerns regarding the accuracy or relevance of the information, please contact us directly for assistance.